Reports of the forthcoming budget structure has caused controversy amid news that flood insurance increases in New Jersey will be used to sustain the Federal Emergency Management Agency (FEMA) in order to free up funds for the wall President Donald J. Trump promised to build along the US-Mexico border.
Budget documents leaked to media outlets have been said to reflect a 10% slash in FEMA funds, which maintains the National Flood Insurance Program (NFIP), among others. The program is currently $25 billion in debt.
Citing reports from the Washington Post, Ashbury Park Press said that “the (Office of Budget and Management) has been asked to come up with a plan to limit the extra payment for homeowners with ‘lower-value’ homes.”
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“President Trump now wants to pay for his giant wall on the backs of New Jersey storm victims and other homeowners who pay flood insurance…” US Senator Robert Menendez told Ashbury.
The publication further quoted FEMA figures, which reveal that flood insurance rates rose by 9% in 2016, and will increase by an average 6.3% this year. If surcharges and fees are applied, the former rate of $878 will rise to $1,005.
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